The South African Reserve Bank has decided to maintain the repo rate at 7%.
The South African Reserve Bank (SARB) has announced that the Monetary Policy Committee (MPC) has decided to keep interest rates unchanged with the repo rate at 7% and the prime lending rate at 10.5%.
The MPC, which met on Thursday, said in a statement issued by SARB governor Lesetja Kganyago, that it had considered scenarios for inflation expectations, as well as fuel prices before making its decision.
The decision comes after Statistics South Africa (Stats SA) on Wednesday reported that annual consumer inflation accelerated to 5% in June, up from 4.5% in May and above market expectations of 4.7%.
Providing an outlook on South Africa's economic growth, the MPC said first-quarter growth was stronger than expected, running close to 2% year-on-year but this was due to higher net exports rather than domestic demand.
